Wealth, Personal Finance & Money

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Follow up Or Die Your Accountant Will Love You part 3

I most highly recommend calling your prospects. I don't care if you are good on the phone or not. Don't try to "sell" anything on the phone, don't make up a canned pitch like some insurance salesman or mortgage broker. Just strike up a conversation and see what concerns they have. Answer their concern(s) if you can or promise to get back to them via phone, fax or email with an answer. Always be polite and honest and you will be amazed at how many folks respond positively to you. Use others for three-ways until you get the hang of it. It will add an invaluable measure of success to your business.

Finally, you MUST have a good message, good product, good prices and a better deal than everyone else your consumer has seen. If you Follow-up religiously with crummy messages, poor grammar, writing that is not client-centered and benefit-focused, you will NOT see more sales no matter how many times you Follow-up. A lot of that "better deal" is YOU too but your written message must be powerful and totally client-centered. If you are not a good writer, find a seasoned copywriter to help you work up the hard-hitting pieces you will need.

So, what are the rules here?

1. Follow-up from 5 to 12 times to get in that 80% bracket.

2. Let technology do the Follow-up for you.

3. Call your prospects on the phone and make a friend.

4. Use client-centered, benefit-focused copy to get your message across.

By the way, depending on what you are selling in products or services, almost everyone is a potential customer most likely, if not now, then in the future. Do you think it makes sense to keep in contact with them? If you said YES, you are right!

How can you do that without pitching them on your product they don't want or need now?

a: Start a periodic ezine and Follow-up weekly with useful information!

b: Have them read some of the articles on my site to see if they are potential candidates:

Remember; the fortune is in the Follow-up. Your accountant will love you if you do Follow-up. You will be out of business if you don't.

Home Loans and Negative Amortization

Owning a home is undoubtedly the American Dream and the bedrock of middle class. Negative amortization, however, can turn the dream into a nightmare if you are not careful.

Home Loans and Negative Amortization

When you apply for a basic home loan, you obviously must repay the loan to the lender. The repayment of the loan is typically set over a certain time period with a certain amount being paid monthly. This process is known as the amortization repayment schedule. In some instances, however, the repayment schedule can be designed to have a very problematic result.

Home loan lenders have to compete for your business. To make themselves stand out, they will come up with unique mortgage packages that make it easy for you to get into a home that perhaps is a bit beyond your means. One of the techniques for doing this is a strategy known as graduated repayment. With graduated repayments, you initial loan repayments are for less than the total interest owed on the loan. The excess interest than accumulates and is usually converted into principal.

Known as negative amortization, this process can be very risky because it is based on a bet. When you pursue a negative amortization loan, you are betting the equity in the property is going to rise faster than accumulating interest. If the equity gain doesn’t increase, you eventually have a problem where you are making payments on a home with no equity. When the amount owed on the mortgage exceeds the equity in the home, you are suddenly upside down on the loan, to wit, the home has become a pure debt.

Obviously, a lender isn’t just going to sit and let the principal on a loan accumulate forever. To avoid this, the loan will typically carry a debt cap at which point the loan automatically converts to a different loan where you start paying the balance off or the loan may just come due. For example, the loan may contain language that if the total debt exceeds 115 percent of the value of the home, the loan will convert or be due in total. Either case is a nightmare because you will either suddenly have payments you can’t make or have to come up with a bundle of cash. For most homeowners, this leads to default.

Negative amortization loans can look very attractive when you are trying to squeeze into a home just beyond your means. Just make sure they don’t kill you in the long run.